Dunkin’ Donuts Starts Restructuring

The Dunkin’ Donuts Company announced on Thursday one of its franchisees would close 100 Dunkin’ Donuts kiosks, and gave a results forecast that disappointed investors, sending its already suffering share price down sharply.

The Dunkin’ locations that will be closed in the next 15 months are in-store self-serve kiosks run by convenience store chain Speedway and these locations generate only 0.1% of sales. Dunkin’ said these closings give it the opportunity to re-enter some areas with full-service locations. The company reiterated its 2015 plan to have 410 to 440 new Dunkin’ Donuts restaurants and the U.S. Speedway accounts will remain a franchisee.

At its analyst day presentation, which was streaming lived online, Dunkin’ said that it expects a profit of $1.87 to $1.91 a share this year, below the $1.92 analysts expected.

What’s more, Dunkin’s clientele is lower income than Starbucks’, making it more vulnerable to the fluctuations in the economy.

For a look at the presentation, which Dunkin’ filed with regulators, click here.

In a worrisome development for the company, Dunkin’ stores said the number of visits to its stores last quarter fell 0.7%. Before the presentations, Dunkin’ shares had been slumping, falling 20% in since June.